The IRD have clarified new reporting requirements for income generating Trusts from 1 April 2022. The main focus of the collection of this information is to enable the IRD to gain a fuller picture of exactly who is benefiting from the income being generated by Trusts in New Zealand.
Examples of the information now required to be disclosed include:
- Financial statements.
- The name, date of birth, tax residencies, tax numbers of:
- all Trustees;
- the Settlors;
- all Beneficiaries who receive income distributions or allocations.; and
- all those having power to remove/appoint beneficiaries and/or trustees.
- Distributions made;
- Transactions the Trust has undertaken; and
- Other information that the Commissioner may require.
The Additional Disclosure requirements coupled with the clarified Trustees’ Duties mandated by the Trusts Act 2019, demand an immediate review of your Trust’s administration to ensure that you are meeting the minimum requirements which are now a matter of law.
If you wish to discuss this or any other matter relating to your Trust, please contact us without delay.
